Academic: KDKMP Must Maintain Goods Availability and Prices

Guru Besar Ikopin University Sugiyanto stated that the Koperasi Desa/Kelurahan Merah Putih (KDKMP) must be able to maintain the availability of goods, competitive prices, and service quality in order to build public trust as users of cooperative services. In a webinar organised by the National Research and Innovation Agency (BRIN) in Jakarta on Tuesday, Sugiyanto said the KDKMP programme has great potential to strengthen the village economy. However, its success depends heavily on the consistency of all parties in managing the cooperative, especially in the early stages of operation. “Looking at the programme, it is an extraordinary programme. The key word is one: consistency from all parties,” said Sugiyanto. He explained that the various business units run by KDKMP, such as the distribution of LPG and basic necessities, are essentially already operated by existing businesses in the community. Therefore, the cooperative must offer added value to gain public trust. Sugiyanto emphasised that the Merah Putih Cooperative needs to ensure goods are always available, have more affordable prices, good quality, and provide timely service. “Don’t let people come to buy at KDKMP and find nothing available because it’s out of stock. Stock management must run well,” he said. According to him, these operational aspects are a major concern given the high public expectations for KDKMP. Moreover, in its initial formation stage, the cooperative receives government support ranging from capital, construction of facilities, to management preparation. He noted that the development model of KDKMP differs from conventional cooperatives that grow from community initiatives or bottom-up, as this programme is prepared by the government in a top-down manner. Nevertheless, he assessed that both models can succeed as long as they provide tangible benefits to the community. Minister of Cooperatives Ferry Juliantono previously stated that KDKMP is being prepared to become a community economic service centre at the village and sub-district level through the integration of various services needed by residents. According to Ferry, through KDKMP, the public will eventually be able to access various needs, ranging from basic foodstuffs, distribution of subsidised fertiliser and LPG, health services through pharmacies and clinics, to the absorption of agricultural and fishery products. He said this integration of various services is expected to shorten the distribution chain, making it more efficient and easily accessible to the public. Besides functioning as a cooperative business entity, KDKMP is also expected to become a local economic driver connecting the community with various government programmes and services. Currently, around 1,000 Koperasi Desa/Kelurahan Merah Putih are already operating in Central Java and East Java. The government is targeting 40,000 cooperatives to be operational by the end of this year.